At the end of November 2016 Israeli taxi service Gett received seven-year venture loan of $100 million from Sberbank with an option for their shares. The parties did not disclose details of the transaction at the time. Vice-President of Sberbank CIB Oscar Ratsin only commented that the Bank received stock warrants, and have the right to purchase securities at a price of a recent investment round (the last one for the company was raising $300 million from the automaker Volkswagen in June 2016).
According to Mr. Ratsin, the Bank will be able to realize the warrants in the event of a liquidity event, i.e. Gett going public or sells a significant stake to a strategic investor. Typically, the owner of the warrant will gain the difference between the indicated price of the shares and the value of securities when the above-mentioned event or transaction occures. Neither the price indicated in the warrant nor the size of the stake were specified. The top manager of Sberbank CIB only noted that the ratio of total funds needed for the purchase of shares under the warrant to the amount of investment may vary in the range of 3-30%. “We are not talking about acquiring a stake in the copmany and participating in the management, – it is a financial instrument for generating capital income in exchange for the investment risks,” explained Mr. Ratsin.
Gett was founded in 2010 (it was originally called Gettaxi). Besides Russia, the service operates in Israel, USA and UK. By the end of 2016 Gett total turnover was about $1 billion. According to the founder of Gettaxi Dave Wiser the company has become profitable in one of the countries of presence. According to Crunchbase, during its existence Gett attracted venture financing from nine investors for a total of $613 million.